- Bitcoin dropped on Trump’s Davos speech.
- It still has room to plunge further, according to market observers.
- So how low can it go?
Bitcoin’s price dropped 3% to $87,649 after US Donald Trump reiterated the US’ claim on Greenland on Wednesday, but experts warn the uncertainty could push the price down to $75,000.
Speaking at the World Economic Forum in Davos, Switzerland, the Republican leader continued his campaign to annex the Danish autonomous territory.
“All the United States is asking for is a place called Greenland,” Trump said.
His speech rounds up months of the White House straining its relationship with the US’ closest allies, which market watchers say is causing uncertainty and could drive Bitcoin’s price down to levels not since 2024.
“We could see it go down to $75,000 to $80,000,” Simran Singh, Monaco Research CEO, told DL News.
Tariff threats
The largest digital asset dropping over 10% over the past seven days highlights the impact Trump’s rhetoric is having on markets.
The so-called “Sell America” trade has been reignited in response to the White House policies, with investors selling off US stocks, bonds and treasuries. Bitcoin dipped alongside riskier assets like tech stocks.
Yet, Trump’s threats to slam some of the US’ closest trading partners with tariffs unless they give in to his demands on Greenland as well as the EU potentially retaliating risks pushing the price of Bitcoin down lower.
“Bitcoin has given back nearly all of the gains from this year, and any further escalation in the tariff threats could see us go lower still,” Matt Howells-Barby, VP of growth at crypto exchange Kraken, told DL News.
He added that there was a lot of support at price levels between $88,000 to $85,000, but the worst case scenario is a drop to $80,000.
‘Won’t use force’
Some traders are hedging their bets, hoping that Trump will soften his rhetoric, like he did last year after the so-called “Liberation Day“ tariff announcements, when the price of the leading digital asset plunged fast only to recover when the White House backed down.
“There’s always the TACO — Trump Always Chickens Out — trade, that some folks are pricing in,” Singh said.
Indeed, there seems to be a slight softening already in Trump’s Davos speech. While the 79-year-old has refused to rule out taking Greenland with military force in the past, he seemed to do so on Wednesday.
“I don’t have to use force,” Trump said. “I don’t want to use force. I won’t use force.”
Bitcoin, Ethereum, and other major digital coins and tokens have struggled to regain ground following a massive October sell-off. Bitcoin broke a new record that month of over $126,000 per coin but is now nearly 30% below that level.
To be sure, other market watchers like BitMEX co-founder Arthur Hayes still seem confident in Bitcoin’s ability to rally. In mid-January, he predicted that a massive liquidity injection from the Federal Reserve will catapult the price to $110,000 and beyond.
Mathew Di Salvo is a news correspondent with DL News. Got a tip? Email at mdisalvo@dlnews.com.
